Regardless of Bitcoin Cash FUDs, BCH is still charting higher and on a weekly basis, this medium of exchange coin is up 19 percent according to our metrics.
Technically, thanks to this week’s rejection of lower lows, we might see further gains next week despite claims of inactivity at Bitcoin Cash’s GitHub and centralization calls from BitPico.
From the News
CoinSmart is a Canadian based cryptocurrency exchange that wants to take out the “cryptic” out of crypto. By that, they want to make crypto trading-whether depositing, withdrawal or trading-easy for entry level or experienced traders.
— CoinSmart (@CoinSmartCA) July 11, 2018
The exchange calls them the crypto curious lot and in place they have tools that would simplify the process of submitting their annual tax fillings. Like we saw early this year, the declaration by most governments that cryptos are securities and profits are subject to capital tax makes filling tax returns difficult and tedious. However, by listing several coins including Bitcoin Cash and availing a Tax Time Reporting tool, it would be easier going forward.
In other news, there are claims that Bitcoin Cash protocol development is alarmingly slowing down. What most critics do forget that is that most of BCH developments do happen outside the protocol. Besides, the core team is constantly repaying the technical debt thanks to their acceptance of Segwit.
Then again, development is accelerated due to their own technical bottlenecks resulting from block size limitation and commitment of ensuring Lightning Network (LN) work. LN is still in beta, yes, but already it is facing a lot of criticism and the requirement for transacting on the off chain layer may after all be an obstacle.
Bitcoin Cash (BCH) Technical Analysis
Unless there is a drastic change in the bull script, odds are this week will end on a high. That result, we project, would print a nice bullish engulfing candlestick lifting Bitcoin Cash from the main support zone of $600.
From previous analysis, this region of support was important and if we take a look at it keenly then we notice that $600 is a multi-level zone of interest. First, it’s the main inflection point of that 11 month support trend line and secondly, it represents 2018 lows. That’s why it continues to anchor our analysis because should we see a strong close below it then most likely bears will drive BCH to the dredges at $300.
In any case though, this week’s candlestick sets the tone for probably gains next week and even Q3 reversing May and June losses.
As it stands, sellers are attempting to reverse gains rejecting thrusts past $850-our main bull trigger line-and this is common.
Note that this pattern usually happen following such kind of up thrusts like we saw on July 16 and 17 and as long as price action is trending within $720 and $850, we remain bullish. For our bulls to be valid, BCH traders must wait until prices close above $850.
Thereafter, they can either execute longs at market price or wait for $850 retests and aim for $1300, our first bull target.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.